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When should payments be made?

It is important that you refer to your contract for information about progress payments. The Domestic Building Contracts Act 2000 governs the amount of money that can be made in payment at any given stage for construction of a full home as well as for renovations and extensions (work not involving the full construction of a home).

The deposit maximums must not be exceeded even if requested by the contractor. The legislation does not cover minimum deposits so deposits less than the maximum allowed may be negotiated and agreed to.

How much should be paid?

QBCC's Facts for Smart Building and Renovating booklet contains information about the maximum percentages of total contract price that should be paid for:

  • Deposits
  • Contracts involving all stages of construction of a home
  • All other domestic building work valued at more than $3,300 but not involving full house construction (e.g. renovations, refurbishments, extensions etc)

It is important not to pay in advance of work progress. This may reduce the protection available to you under the Home Warranty Scheme.

Additional Information

QBCC's Consumer Guide provides useful information on contractual requirements. If you have further questions concerning payment you should seek legal advice.

Licence
Creative Commons Attribution 3.0 Australia (CC BY 3.0)
Last updated
24/01/2014 3:49 PM

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